“An experience” with less reliance on gaming
As the Hard Rock Hotel & Casino Lake Tahoe prepares for its January grand opening, Chief Operations Officer Don Marrandino says the resort will dispense with the once-reliable business model that relied on 80 percent of revenue from gaming.
“We hope to be 55-60 percent gaming,” Marrandino told the Reno Gazette-Journal. “What we’re trying to do is emulate the new model, where a significant portion of revenue comes from nongaming: first-class hotel rooms, four-star-ish. Also, several unique restaurants, indoor-outdoor activities in the summer. You’ll see a sexier Lake Tahoe/Northern Nevada casino, a dynamic place.”
From the start of the recession in 2007 through 2013, gaming revenues at the south end of Lake Tahoe have fallen 36 percent, reported the Gazette-Journal.
Marrandino said the former Horizon property in Stateline is prepared for competition from nearby tribal casinos. “They’re here. You deal with it,” he said. “But if you create an experience, people will want to travel to you. We will capitalize on Tahoe, whatever the season is. We’re looking at a financial model where we diversify our revenue stream. That will make us essentially successful.”
He also said the new resort will appeal to locals, and even hire local bands. “Our goal is a diverse entertainment schedule, some major stars without bands, ’70s and ’80s guys who live around here, Tahoe. We say to them, you got a stage here. That’s been met with interesting enthusiasm.”
The 25,000-square-foot 539-room resort will be managed by Warner Hospitality. The grand opening is slated for January 28.
